How We Price Our Cash Offers
A cash offer is not just a sale price. It has to account for repairs, title, payoff amounts, closing costs, holding risk, and what you actually keep.
The Formula
Every written offer starts with the same framework. The number can change after a walkthrough, title search, payoff statement, lien search, or HOA estoppel, but the logic should be visible before you sign anything.
After-Repair Value
ARV
Repair Costs
Repairs
Our Costs + Margin
Costs
Your Cash Offer
Offer
The number you see in our written offer is the result of those inputs. The seller's walk-away amount is a separate number because mortgages, property taxes, HOA balances, judgments, code liens, IRS liens, and probate or court costs may still need to be handled at closing.
Offer price
The purchase price in the contract.
Closing statement
The title company ledger showing credits, payoffs, taxes, and deductions.
Seller proceeds
The amount left after required payoffs and closing items.
After-Repair Value (ARV)
What your house would sell for if it were in market-ready condition
We pull recent closed sales from BeachesMLS (Max's MLS membership ID: 276547522) for properties similar to yours in size, layout, and location. We're looking for homes that sold in the last 90 days within a half-mile radius, adjusted to comparable condition.
We don't use Zillow Zestimates or automated valuations. Those tools miss condition, lot placement, flood zones, and local market nuances that matter in South Florida. MLS comp data gives us actual closed prices from real transactions.
Example: 3BR/2BA in Lake Worth, FL
- Comp 1: Lake Worth area sale (1,480 sqft) $365,000
- Comp 2: Lake Worth area sale (1,520 sqft) $372,000
- Comp 3: Lake Worth area sale (1,410 sqft) $358,000
- Adjusted ARV $365,000
We can show you the comparable sales used to build the offer. If you have a better comp, a recent appraisal, or a real listing estimate, bring it into the conversation.
Repair Cost Estimate
What it'll cost to bring the house to market-ready condition
This is where a seller should slow down. A vague "$45,000 in repairs" line item is not enough. Ask what it includes: roof, AC, electrical, mold remediation, flooring, cabinets, appliances, cleanout, permits, code compliance, or holding time.
Max Cohen holds Florida General Contractor License CGC1534000. He's pulled permits and managed rehabs across Palm Beach, Broward, and Miami-Dade counties. Our repair estimates come from actual trades pricing, not generic per-square-foot guesses.
Sample Repair Estimate: 3BR/2BA in Lake Worth
We itemize the major assumptions. If you already have contractor bids, inspection reports, insurance estimates, or code-violation letters, send them. Those documents can change the offer in either direction.
Our Costs and Margin
What we spend to buy, hold, rehab, and resell the property
We buy below the projected resale value because we take on repair risk, title risk, holding costs, resale costs, and market risk. If the house is clean, financeable, and easy to show, an agent listing may be the better path.
Here's what we're accounting for beyond the repair costs:
Closing costs (buying)
The offer states which buyer-side and seller-side costs we cover. Existing mortgages, liens, taxes, HOA balances, and judgments still have to be resolved from the closing statement when they exist.
Holding costs
Property taxes, insurance, utilities, and loan interest during the 3-6 month rehab period.
Closing costs (selling)
When we resell the finished house, we pay agent commissions, title, and doc stamps again.
Our profit margin
The margin has to cover the risk that repair costs run over, permit issues appear, the market shifts, or the finished house takes longer to resell.
Worked Example: Putting It Together
Using the same Lake Worth 3BR/2BA from above, here's how the numbers flow from ARV to offer:
This is a simplified illustration. A real closing statement may also show mortgage payoff, prorated property taxes, municipal liens, HOA balances, judgments, code fines, wire fees, or court-related items.
Why We Show You the Math
Most cash buyers give you a number and expect you to take it. We give you a number and show you why. If you've gotten other offers, you'll be able to compare them against real data instead of trusting a stranger's word.
Some sellers look at the math and decide to list with an agent instead. That's fine. At least the decision was informed. Other sellers look at the repair costs, the 6-month timeline, and the carrying costs of a traditional sale, and the cash offer makes sense for their situation. Both outcomes are legitimate. We'd rather lose a deal honestly than win one through confusion.
What you should ask any cash buyer
- Who is buying the property, and can they show proof of funds?
- Which title company is closing?
- What costs are covered by the buyer, and what payoffs reduce seller proceeds?
- Can they explain the repair number line by line?
See the Math on Your Property
Share the address and the problem you are trying to solve. We will review the property, explain the major assumptions, and put any offer terms in writing.